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Stockholders' Equity
 3 Months Ended
Mar. 31, 2016
Equity [Abstract]  
Stockholders' Equity

Note 7 — Stockholders’ Equity

Equity Plans

Stock option activity for the three months ended March 31, 2016 is presented below (in thousands, except per share data and contractual term):

 

 

 

 

 

 

 

Weighted -

 

 

Weighted -

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

Exercise

 

 

Remaining

 

 

Aggregate

 

 

 

Number

 

 

Price Per

 

 

Contractual

 

 

Intrinsic

 

 

 

of Shares

 

 

Share

 

 

Term (in years)

 

 

Value

 

Outstanding at December 31, 2015

 

 

2,171

 

 

$

33.84

 

 

 

 

 

 

 

 

 

Granted

 

 

30

 

 

 

31.81

 

 

 

 

 

 

 

 

 

Exercised

 

 

(19

)

 

 

26.34

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(109

)

 

 

36.02

 

 

 

 

 

 

 

 

 

Outstanding at March 31, 2016

 

 

2,073

 

 

$

33.77

 

 

 

6.40

 

 

$

3,148

 

Exercisable at March 31, 2016

 

 

1,110

 

 

$

32.44

 

 

 

4.61

 

 

$

2,763

 

Vested and expected to vest at March 31, 2016

 

 

1,968

 

 

$

33.70

 

 

 

6.27

 

 

$

3,102

 

 

Restricted stock unit activity for the three months ended March 31, 2016 is presented below (in thousands, except per share data):

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

Average

 

 

 

Number of

 

 

Grant Date

 

 

 

Shares

 

 

Fair Value

 

Unvested at December 31, 2015

 

 

504

 

 

$

33.67

 

Granted

 

 

5

 

 

 

30.03

 

Vested

 

 

(2

)

 

 

36.43

 

Forfeited

 

 

(24

)

 

 

34.30

 

Unvested at March 31, 2016

 

 

483

 

 

$

33.59

 

 

Stock-Based Compensation

Forrester recognizes the fair value of stock-based compensation in net income (loss) over the requisite service period of the individual grantee, which generally equals the vesting period. Stock-based compensation was recorded in the following expense categories (in thousands):

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2016

 

 

2015

 

Cost of services and fulfillment

 

$

1,194

 

 

$

1,237

 

Selling and marketing

 

 

314

 

 

 

334

 

General and administrative

 

 

627

 

 

 

615

 

Total

 

$

2,135

 

 

$

2,186

 

 

Forrester utilizes the Black-Scholes valuation model for estimating the fair value of stock options. Options granted under the equity incentive plans and shares subject to purchase under the employee stock purchase plan were valued using the following assumptions:

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

March 31, 2016

 

 

March 31, 2015

 

 

 

Equity Incentive

 

 

Employee Stock

 

 

Equity Incentive

 

 

Employee Stock

 

 

 

Plans

 

 

Purchase Plan

 

 

Plans

 

 

Purchase Plan

 

Average risk-free interest rate

 

 

1.52

%

 

 

0.47

%

 

 

1.37

%

 

 

0.11

%

Expected dividend yield

 

 

2.3

%

 

 

2.3

%

 

 

1.8

%

 

 

1.8

%

Expected life

 

5.0 Years

 

 

0.5 Years

 

 

5.1 Years

 

 

0.5 Years

 

Expected volatility

 

 

24

%

 

 

27

%

 

 

25

%

 

 

22

%

Weighted average fair value

 

$

5.53

 

 

$

7.06

 

 

$

7.48

 

 

$

7.93

 

 

 

Dividends

In the three months ended March 31, 2016, the Company declared and paid a dividend of $0.18 per share or $3.2 million in the aggregate. In the three months ended March 31, 2015, the Company declared and paid a dividend of $0.17 per share or $3.1 million in the aggregate. In April 2016, the Company declared a dividend of $0.18 per share payable on June 22, 2016 to shareholders of record as of June 8, 2016.

Treasury Stock

As of March 31, 2016 Forrester’s Board of Directors had authorized an aggregate $460.0 million to purchase common stock under its stock repurchase program. The shares repurchased may be used, among other things, in connection with Forrester’s employee and director equity incentive and purchase plans. The Company did not repurchase shares of common stock in the three months ended March 31, 2016. In the three months ended March 31, 2015, the Company repurchased 0.2 million shares of common stock at an aggregate cost of $5.7 million. From the inception of the program through March 31, 2016, Forrester repurchased 15.0 million shares of common stock at an aggregate cost of $423.1 million.